Recently, IronFX has been mired in a controversy surrounding client withdrawal requests and in the midst of a CySEC investigation while the CEO of the company’s UK unit, Stefanos Mitsi, parted ways with the brokerage. When all is said and done, however, IronFX Global UK, the UK entity of IronFX, regulated by the U.K. Financial Conduct Authority, has marked 2014 as a profitable year.
Finance Magnates’ reporters learned from a regulatory filing of the UK Companies House that the company has substantially grown its revenues from the IronFX Global UK entity. The total result was $6.9 million, which is materially higher than the figure reported in 2013 ($815,576).
Pretax profits for the year totaled $329,433, when compared to $38,839 in 2013.
The document also details that the firm was granted a matched-principal broker license from the FCA, the term which the U.K. Financial Conduct Authority (FCA) uses to describe an agency model brokerage (STP or Straight-Through Processing).
With this information at hand, the UK unit of IronFX could have been exposed to the negative effects of the Swiss National Bank (SNB) crisis which hit the foreign exchange markets on the 15th of January this year.
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The statement filed with the Companies House on April 2015 reads, “The company’s activities expose it to a variety of financial risks, which have continually evolved as the business has grown and activities have expanded into a matched principal brokerage.”
Operating Metrics for 2014
The net profit for the year ending on the 31st of December, 2014 totaled $243,973. For the year, IronFX Global UK’s total current assets including total receivables and cash equivalents amounted to $3.86 million.
Looking at the yearly costs of the broker’s operations in the U.K., the figure totaled $3.84 million with the average monthly number of employees in 2014 amounting to 85.
As of December 31st, 2014, the total sum of cash held on behalf of clients amounted to $799,102.
Interestingly, the regulatory filing also reveals that IronFX Global UK donated £5,000 to the UK Conservative party.